Speaker Ryan Commits to Getting Tax Reform Done This Year CSPAN June 20, 2017 1:01pm-1:39pm EDT
from sacramento wrote to us about her daughter riley who is autistic.ley is riley is covered by medi-cal ticket provides critical services that allow her to lead a more normal childhood. and here's what the mother said. when my daughter riley was born, we quickly learned that she hads difficulty with basic tasks like sleeping and eating. she developed pneumonia multiple times. she was continually sick. after turning three, she was diagnosed with autism., she is now eight years old, and she is thriving, thanks to medicaid funding support programs like physical therapy, sh speech therapy, and feeding therapy. she is now verbal -- >> all of last night. [speaking in native tongue] by democratic senators as well as all senate session on our website c-span.org.
house speaker paul ryan about to address the national association of manufacturers talking about trade policy. >> thanthank you so much, buddy. appreciate it. afternoon, everybody. how are you doing? [applause] great to see. takes a coming out today. welcome to d.c. hey, kathleen. thank you. thank you very much. appreciate it. please. we go back many, many years. thank you so much, jay. i also just want to say what an honor it is to call on my dear friend, our vice president mike pence. isn't he doing a great job? [applause] together we are working on the oldest agenda for the country, registry perform, tax reform, rebuilding our military. after use talking about these
problems, we are finally doing something about them. but i do not view this as sort of a simple checklist for governments or just turning the page of the policies of the recent past. this is much deeper than that. it's much bigger than that. it goes back to something i talk about right when i became speaker. it's something that is as relevant today as ever. it is about building a confident america, an america where people are confident that they can get a job that pays well in an economy that is growing. an america where people are confident that the children will grow up with real security and opportunities. and we want an american where people are confident, that they can withstand its challenge, and emerge even stronger. this to me is the great task that is before us. i've got to tell you, because these are anxious times, we all
feel it. it's not something we often think about in the rush of our daily lives, but we are being tested. our capacity to come together and to always move forward toward a better stronger nation is being tested. that is what defines us as americans. it's not about our struggles. it is about how we overcome them, how we bounce back pics of this is what drives me everyday as a policymaker. how do we build of our country's antibodies? you know what i mean when i say that is how do we fill up that well of resilience we can call and when things get tough. i believe i have come to the exact right place to talk about how we get there. how many times in recent years has the so-called experts told us that american manufacturing is never coming back? at its best days were in the rearview mirror? but right now there are nearly
1 million more americans working in manufacturing and the were at the beginning of this decade. manufacturing is thriving across the country. now you know as well as anyone how quickly things can change. and when they do, will we be able to say that we are ready? will our workers be ready to take on the jobs that don't even exist yet? will our economy be ready to handle the disruptions that we can't even fathom yet? that's our test. and that is why working with president trump we are delivering on an agenda to create jobs to grow our economy. to begin fixing our regulatory system we repealed obama air red tape with a legislature will recall a congressional very review accurate before this congress, this totally been used successfully once before, once in the 20 years this tool has been on the books.
you know what? since january, 14 congressional review act seven sign into law. 14 times we rolled back oppressive regulations. it is estimated that his actions alone could save families and business more than $36 billion. and we are just getting started. and to revitalize main street, earlier this month house passed the financial choice act. look, you've seen as much as anyone they hit the community banks have taken from countless costly rules coming out of washington. these banks are the very lifeblood of credit for small businesses across the country. our plan will give relief to those community banks. and make it easy for small businesses to get the capital that they need to grow and to hire. another thing we need to do, we need to make our workforce more resilient and the think we need to do that is to close the skills gap. how many times you've been talked about this with your
member of congress, after rotary clubs, with your fellow workers? this is a vitally important. we need to connect people with the skills they need to get good paying in demand jobs, and that is why on this thursday the house will be taking action on critical legislation to expand career and technical education. this has strong support from both sides of the outcome republicans and democrats. we need to get it to the president desk fast. in our work and just repeal and replace obamacare. because i got to tell you, this law is clearly collapsing. americans nationwide, they are facing double-digit premium increases. and coverage choices are disappearing by the day. in 30% of the counties throughout america, people have one or no plans to choose from. this month and some decide to quit the obamacare exchange in ohio, leaving taking counties with zero coverage options next
year. -- anthem. last month blue cross blue shield decided to quit the missouri exchange leaving 25 counties with zero coverage options and also last month medicaid signaled it would quit the iowa exchange, which will leave 94 of 99 counties in the state of iowa, that 70,000 people, with zero coverage options. so this is the story across the country. higher premiums, little or no choice, a death spiral. we are engaged in nothing short of a rescue mission to finally bring relief to american struggling under this law, and to give everyone access to the care that they need. so just in five months, in five months we have made real progress in getting government out of your way. and your support has been the big reason why and i just wanted to come and say thank you for that.
[applause] >> once in a generation, about once in a generation or so there's an opportunity to do something absolutely transformational. something that will have a truly lasting impact long after you and i are gone. that moment is here and we intend to meet that moment. ladies and gentlemen, we are going to fix this nations tax code once and for all. [applause] >> this has got to get done. you may recall that the last time we did this was three decades ago, the same year i got my drivers license. a lot has changed since then. our economy is more interconnected with the rest of the world than ever before. the internet has transformed the way we do business and go about our daily lives. but the world is changing and as
it has changed our tax code has remained stuck in neutral. it has ballooned the 70,000 pages of rules and regulations that few people today actually understand. there's this old line about the tax code. our tax code is about five times as long as the bible but with none of the good news. president trump recently introduced a set of principles for tax reform, and right now we, the house, the senate, the white house are working together to turn them into a transformational tax reform plan. chairman kevin brady and our ways and means committee members are holding open meetings and be with stakeholders on this right now. i want to take a few minutes and walk you through what that kind of reform will look like. let's start with families and individuals. at some point along the way our tax system started working for the tax collectors rather than working for the hard-working
taxpayers. and look at what happens during tax season. i could describe the complexity of the code all day long, but what really defines our tax code is that sense of dread that you feel. you know that feeling? you have to navigate long complicated forms to file your return. you need to wade through a seemingly endless the mount of deductions and abounds with its own requirements and then after you tally up almost deductions, you are placing up to seven different tax brackets based on your income level. and at the end of the day you hope, i mean you really hope that you do not owe a whole bunch of this year. you hope because you really don't know ahead of time. how could you? this whole system is too confusing and it's just too darn expensive. we have got to stop this madness. don't you agree? [applause] >> so let's just start over.
first, first we will eliminate harmful burdensome taxes including the death tax and the alternative minimum tax. [applause] >> next, we will clear out special interest carveouts and expense of deductions, folks are keeping those that make the most sense. homeownership, charitable giving, retirement savings. we will consolidate the existing seven brackets into three, double the standard deduction and semper fi things to the point that you can do your own taxes on the form the size of a postcard. this instead o of the 1040 form. wouldn't that be nice? [applause] this is within our reach. and finally and most importantly we will use the savings from a limiting these loopholes to lower tax rates. what he say that again. we are going to cut taxes.
[applause] >> not up, down. [applause] >> but if we're going to try to fix our tax code, do we have to fix all of it. both for individuals and for businesses. do you know why we're going to do the? because it's going to create jobs. that's what this is about. that's what this is all about. jobs jobs jobs. good paying jobs. as a matter fact, the nonpartisan tax in addition essman that our blueprint would create 1.7 million new full-time jobs. how do we do it? well, right now we have the worst business tax system in the industrialized world. most people don't really know this but here in america eight out of te ten businesses filed e taxes as individuals. in fact, most of our jobs come from these new andy small businesses. and under our crazy system,
successful small businesses pay a top marginal tax rate of 44.6%. it's crazy. look, you all know this but manufacturing employs more than 12 million americans and at more than $2 trillion to our economy every year. and the overwhelming majority of these companies are small businesses. at the same time our corporate tax rate, the one the taxes the rest of american businesses, it's 35%. let me try to put this in a global perspective. overseas, which were i come from means lake superior, companies in canada, they pay just 15%. heck, the average tax rate on businesses in the industrialized world is 22.5%. yet our corporations pay 35% and are successful small businesses
pay 44.6%. how can we compete like that? we can't. it actually gets worse than that. you see, the status quo encourages companies to move operations overseas, to make things abroad a bid to sell the back to the united states. this makes no sense and it is actually costing us a lot of jobs. we were actually very unique in the world in the way we discourage capital from coming back to america and how we incentivize off shoring. this is not the kind of exceptionalism that we should be aspiring to. today, u.s. companies are leading to become foreign companies when it should be the other way around. we want foreign companies to become u.s. companies. we must think differently. so once again we make things here and export them around the world. dorsally different ways of achieving district we and us have her own ideas. and that of other things were
with the administration because we want to get this right. here's the bottom line. we cannot accept a system that perpetuates the drain american businesses overseas. [applause] when i look at this once-in-a-lifetime transformational opportunity, my view is this. we should not just try to play catch up with the rest of the world. we should not just aim for being in the middle of the pack. let's not accept following any of the countries wake. let's be the best once again. part of this is moving to what we call a territorial system that reverses this trend of corporate inversions and enables businesses to bring back cash stranded overseas without being taxed. right now if an american company makes money overseas, it gets taxed over there. but we also taxed it again if that company tries to bring that money back into the u.s.
almost no other country does this. and as a result it is preventing many companies from bringing that money back home. they just keep it over there. it is literally stranding trillions of dollars that could come back into our economy. we've got to fix this, and we will. [applause] >> of course real tax reform means slashing our corporate tax rate as low as possible. this means eliminating special interest carveouts and replacing them with lower tax rates for all businesses. and it means creating a new lower tax specifically for small businesses so that they, too, can compete and a fair level playing field. there is one last piece of this puzzle. and it goes back to the idea that all of this is about looking down the road. it's a plan for the future, leaving a better legacy.
these reforms, these tax cuts, they need to be permanent. every expert agrees -- [applause] they need to be permanent because every expert agrees that temporary reforms will only have a negligible impact on wages and economic growth. businesses need to have confidence that we won't pull the rug out from under them. they need the certainty from permanent tax cuts to hire more workers come to invest in their businesses and to plan for the future. so that's basically an overview of our plan, which will begin to turn into legislation to put before congress. it is a very ambitious plan, yes, but you know what? it has to be. now, i know that the cynics and the naysayers will be out in full force. you will hear that tax reform is coming along one day. then you'll hear the tax reform is dead. then you hear that it's back on track. then you hear that it is on life support. sometimes you will hear this in the same week.
sometimes you hear this in the same day. heck, sometimes you'll hear this in the same hour. do not be surprised by any of this. i'm here to tell you, we're going to get this done in 2017. [applause] >> do you know why we're going to get this done in 2017? because we had to get this done at 2017. we cannot less cannot listen once in a generational moment slip by. yes, the defenders of the status quo, and there are many of them, they're counting on us to lose our nerve, to fall back or to put this all together but we will not wait for a path for obstacles but guess what? it doesn't exist. and we will not cast about for quick fixes in half measures. transformational tax reform can be done and we are moving ahead full speed ahead. i promise you that we will get
it all that we have. and here's what i'm asking you today. i'm just asking you to do the thing, getting the site, help us get this done. help us make this difference here to help us make you build the confident america that our children deserve, that you're building for your families and your communities right now today. thank you very, very much today. i really, really appreciate it. [applause] >> thank you. >> thanks, man. appreciate it, j. >> thanks very much. thank you very much, mr. speaker. we very much appreciate the speaker being with us here, and we're going to take a few questions. >> i have my postcard. >> from the audience. we know we'll have a little bit of time, so i do want to start off the with a very serious
question, mr. speaker, and how is our friend steve scalise. >> what he's doing a lot better. i saw them on friday. he is a -- [applause] >> it's going to take some more searches but he's responding. he's readin breathing on his ow. he's talking. he grabbed somebody thought and started texting away. so he's doing a lot better. please keep them in your prayers. >> we're going to open it up to questions, and you can send us questions to summit and tweet us at #mfgsummit. >> so mr. speaker, you specifically said you need our help in getting tax reform dendrite until there's a lot of committed people to do exactly that. tell us one thing we can do back home in the districts that can actually make a difference. >> at a community with your employees, show your employees have big a deal this is, for
just your business, their jobs, for competitiveness, or the ability to expand and to make sure those employees to mitigate with the member congress. make sure we get this conversation going in this country because this is existential for the viability of our economy going forward. so make sure i see a lot of wisconsinites writer by the way. i know they are doing this. make sure your committee to which employs a make sure that they committed with the public officials, with their member of congress. >> i think it's important when you said employees. obviously it's great to have folks who are running the companies and others but it's good to have employees explain how really matters to the jobs. >> just look at the tax differences. it's a big difference. big deal. we have big manufacturers in wisconsin and small manufactures in wisconsin. they understand global constitution. of all the things we can do really give us an edge is taxable. i think it's important to committee with everybody. >> cost of doing business is what we care about everyday, and will talk about manufacturing
competitiveness so it's tax reform, authority form. on tax reform you mention, you so much for doing so, that so many manufacturers are small and medium-sized manufacturers. are you confident, you talked about confident, are you confident small manufactures are not they're going to be left behind? that collation is some tom riordan. >> i am confident because look, in wisconsin 90% of our business what we call pastors. they are sub s, sole proprietors. that's most of small business. clearly most of america's manufactures. you can't just go with the rate for corporations which is in america 20%, 10% 10% of wisconsin. you have to lower the rates for everybody across the board. at the very least level the playing field but give them the edge they need so they compete in the global economy. i wasn't joking about lake superior. a canadian told by, job shop will be taxed at 15 and a
successful tool and die job shop in wisconsin, over 50% when he throws this date back to top of it. it puts us that huge competitive disadvantage. it's got to be for all, big and small boat side. >> just reminder you can submit your questions to summit, i will get them right here. you greenblatt who is the chair of our small and medium manufactures group asked kind of a process question which also talk a bit about what is wondering what the timeline is. we understand and we get that it's dead, alive, dead, alike. all that. what is a realistic timeline. >> our goal, just get it done by the end of the calendar year. my personal goal is get done by opening day of deer hunting season. so that's the saturday before thanksgiving. i really believe that is a very viable.
senator mcconnell, steve mnuchin, gary cohn, we been beating rightly with the tax writers, hatch and brady, for a timeline and we think it's very, very much doable i didn't is done by the fall. so that come the first of you when new system place every knows the rules of the road. >> another question coming from one of our members in florida who is first of all saying thank you for your leadership on tax reform but then asking what you think will happen with the estate tax. >> we want to get rid of it. it makes no sense. >> you were a lead on that for so many years, thank you. >> the moral principle. you pay all these taxes while you are living in your life can sometimes multiple times in the same dollar and then what, you die and he gets taxed? this is one of the greatest killers of intergenerational -- i look at my own cousins were in the excavating business. a cat scraper these days cost
almost half a million dollars. what are you going to do, just cut your business in half and soul of a bunch of your assets just to try and pay the taxes can stay in business two-handed on from one family member to the next? it is a killer a business is being transferred down the line from one family to the next pick a special people who are upset wealthy, who are farmers and ranchers, small business people, manufactures. think of the tool and die in the steam machines and all the kinds of expensive capital and investments people make. you will compromise that business with the estate tax. that's what we does one become a developing. >> that's great news and, of course, -- [applause] >> and, of course, the same mindset is something we should all thinking about when particular repatriation. a lot of assets overseas though not with us. i know are manufacturers can about that its will. when we talk about the cost of compliment the cost of doing business, and other driver is
the regulatory regime which we been under not just -- although it's been pretty bad but for 20, 30 years regulation have been piling up, 297,000 are impose a manufactures at a cost of about $35,000 per employee per year for the small manufactures. first, thank you for the work on cra. that was phenomenal. i don't know anyone expected it to be so successful, but thank you for that. do you see a path forward for a legislative regulatory -- >> i do. first on your earlier reference can we delete we should distinguish between liquid and illiquid speedy i didn't give your chance to add to that. >> i could tell where you were e going on that one. second, so we see this as ways of reform. the first wave was use this cra tool which is time-limited, get at recent regulations that we could resend and get this done.
those are now in law. the second wave is the administration we have kept the secretaries ever getting deputies and assistance, back to take the ball from there and clean up the regulations coming out of their agencies. i think department of labor is a good example. then with other legislative reforms that would be more challenging to pass but we think we have a very good case for things like the reins active we believe our elected officials, people you vote for in congress, legislative branch, they're the ones who should be writing the laws, not these unelected bureaucracy, unelected bureaucrats. so that's what the reins active does commit this individual that is a full force of law, major regulation, the weather goes into effect it has to come back to congress for a final vote before goes into effect. more than half state legislators i would do this. what you do at the federal level. that becomes a check on vacation we don't have this regulatory yacht like bureaucrats or don't understand our way of life, our
economy and micromanage things. if a going to live under a law, then the person we voted for should be the one writing that law, not someone like a bureaucratic the other reform which think is important is regular budget. let's do cost benefit analysis. does the cost of this pose regulation to outweigh the benefit or not? if it does, then don't do it. if it doesn't, then is probably the right thing to go forward with. that's the regular discipline we want to have that's going to require further legislation. >> the regulatory budget was part of executive order which was phenomenal and his wine in and to out is great for manufactures. you had a voice in that is also thank you. one of your mentors i know is jack kemp. here's very much i can ping question. as a young american, business, alive cast him as he in america what the ability to save and invest for my future. how will tax reform address the ability to save and invest?
>> that's why you probably saw one of my points i made, there are certain things we do want to prioritize and emphasize, chattel giving, buying house and saving for retirement. whatever tax code. the tax code is biased against they did with the release want to remove biased against saving and investment so people can say for the future. the best possible thing for the young person is not an economy growing at one to 2% but growing at three to 4%, creating good high-paying jobs, a lot of debate. that's why talk about the skills get it were to close the skills gap, lifelong learning and get the economy wired so it's ahead of the curve. ..
look at our education system. it has a lot of room for improvement but it is a good one. look at our intellectual property, rule of law, the entire system. you fixed this killer of a tax kill you get the regulatory system in a good place and there is no stopping the country. this is the best country to live, work, raise kids. and heavy future in. that is what we think is necessary to rebuild this america. no matter what happens we can handle it. because we have ourselves in a good place. that is why i think the crown jewel of rebuilding is to clean up, reform the tax code, there
is no stopping us. [applause] >> i will put another plug in for infrastructure.we can talk about that another day. >> okay. also from another question here does government have a role in helping workers find dignity in their work? >> i think it does. in many ways government can undignified work and it can penalize work. this is one of the things we will be tackling through the course of this year and next year.right now if you take a look at our war on poverty, the poverty rates that we have our about the same they where we started this 31 years ago. you take a look at all the benefits, as well intended as a are you stacked them up on top of each other and it is a big
taxpayer they the incentivized work. we need incentives and switch them with a reform that actually makes it pay. the tax rate pay is not that -- the top effective tax rate a mom with two kids getting 24,000 and benefits will lose $0.80 on the dollar should take the job. we do not want to have a poverty trap that discourages people taking that step forward in life. you want to make work always pay. that is why we think we are due for another round of welfare reforms focused on getting people the skills they need, customizing benefits and then tapering the benefits cut off in a way that it will always pay to work.that is why think the dignity of work is so important. because we have glimmers and we need more people. the reason is also we have these participation rates among
young people that are not where they need to be. there back to 1978 levels. we have to do everything we can to push, prod, stick, people to get into the workforce and get the skills they need to have the dignified life that is there for them and they have the potential for. i would argue all federal policies are holding them back. >> that is the picture i have actually. there isn't in my office you and i are at snap on and behind us is a banner. you were talking that day to manufacturing workers good there is so much dignity there in there is so much potential and really i am pleased that you have supported us for so many years. can i ask your final question because we have to wrap up? there has been a lot of strife in washington. what is one thing that we can do as citizens to help you and your colleagues rise to the
occasion? >> let's not talk about why we cannot do something, let's talk about how fantastic things will be if we get this done. let's not talk about this little tax benefit or that tax benefit. let's talk about the big picture. we're not trying to tell people, let's see what we can clearly achieve the country. help us see this better day. that if you are put on a level playing field as a manufacturer with the rest of the world, how much better you can do. how many more wage increase if you can have. how many more jobs you can fill. how much better this country can be. i think we need to look a little more aspirational he at the horizon that is clearly there for us to give. not worry about the day today. i tell people there's a lot of acrimony, maybe it is because of politics, whatever the reason. just do not give party to it. put it aside, let's be happy
warriors and optimists. let's talk about this beautiful picture that we can have if we work together. [applause] >> thank you. that is exactly why we love you. you have such a great outlook we are so proud of you and pleased to be alongside of you to improve the manufacturing economy. we are out of time. those of you who are joining us on lifestream this will conclude shortly but you can still take action on tax reform and contact your members of congress. all you need to do is text mfgtax to 52886. i need everybody's help in here as we conclude this section. we are going to take a selfie
because another speaker loves to do that. we're going to take a selfie of everybody here. >> all right. >> that means i have to - >> do you know how to do it? >> there is some technical work to be done here. >> what is your password? [laughter] >> all right guys you have to smile behind us. somebody back there - [applause] >> have the rabbit ears behind me. thank you everybody, i appreciate it! >> speaker paul ryan will be joining his colleagues for debate in house at 2:00 p.m. eastern live coverage on
eastern begins at 2:15 pm see the senate live on c-span2. while the hill and other news sources reporting the white house press secretary sean spicer is leading a search for his own replacement in the briefing room podium as part of a larger plan to shake up the white house communications operation according to a knowledge of the aftercare last week sean spicer and reince priebus reached out to fox news contributor laura ingraham about the role the press secretary and daily mail editor david -- about the rope medications director according to a white house official. you can read more about email@example.com. in just a couple of moments who have the white house briefing live. now we have some information on the healthcare law replacement. quest healthcare is the top of the very next discussion for the longer look atha